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Banking industry

Senators Urge Mortgage Servicers to Notify Homeowners of COVID-19 Relief Protections

Strategic Insights

— 1 min read

The COVID-19 pandemic has brought unprecedented challenges to American families, and the burden of mortgage payments has been exacerbated by the economic downturn. In response, United States Senators Elizabeth Warren and Sherrod Brown are leading a letter to major mortgage servicers, urging them to inform eligible homeowners of the foreclosure and forbearance protections available to them under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provides critical mortgage relief for eligible single-family borrowers with federally backed residential mortgages, including a prohibition on foreclosure for at least 60 days and up to 360 days of mortgage forbearance.

Key Takeaways:

  • The CARES Act provides mortgage relief for eligible single-family borrowers with federally backed residential mortgages, including a prohibition on foreclosure for at least 60 days and up to 360 days of mortgage forbearance.
  • The lawmakers have written to major mortgage servicers, including Wells Fargo, JPMorgan Chase, Mr. Cooper, and Bank of America, to inform eligible homeowners of the available protections.
  • The servicers are urged to ensure that families facing hardship due to COVID-19 are able to remain in their homes by providing accurate and sufficient information on how to request forbearance.
  • Senators Warren and Brown are joined by Senators Kyrsten Sinema, Jack Reed, Bob Menendez, Brian Schatz, Catherine Cortez Masto, Tina Smith, and Chris Van Hollen in urging mortgage servicers to take action.
  • Senator Warren has pressed the Trump Administration to deliver robust resources to address the public health emergency, including mortgage and foreclosure relief for homeowners during COVID-19.

Statistics:

  • The CARES Act provides up to 360 days of mortgage forbearance for single-family homeowners facing hardship due to COVID-19.
  • The lawmakers have asked mortgage servicers to notify Eligible homeowners of the foreclosure and forbearance protections available to them in a timely and accurate manner.
  • The COVID-19 pandemic has led to an unprecedented economic emergency, affecting millions of American families.

Sources:

  • Al Bawaba (Albawaba.com)

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